Morgan Stanley upgrades Contemporary Amperex Technology (03750) to "hold" and raises the target price to 815 Hong Kong dollars.

Morgan Stanley released a research report stating that Contemporary Amperex Technology (03750) continues to innovate and strengthen itself, rather than passively responding to demand cycles. The bank has raised its profit compound annual growth rate forecast for Contemporary Amperex Technology from 25% to 30% for the years 2026 to 2028. The rating for the H shares has been raised to "hold" and listed as a top pick, with the target price increased by 17% to 815 Hong Kong dollars; at the same time, the target price for the A shares of Contemporary Amperex Technology (300750.SZ) has been raised by 6% to 595 RMB. The bank believes that even with fluctuations in raw material prices, changes in demand, and geopolitical disruptions, they have not impacted the company's structural growth trajectory. The company is entering a new product cycle, with two new-generation battery technologies, namely sodium-ion batteries and solid-state batteries, set to commercialize. It is expected that these two products will be rapidly mass-produced in the next three years, driving accelerated growth and maintaining market share.